Simandou Iron Ore Mining Halted as Workers Strike Over Pay Dispute

Mining at Guinea’s Simandou Iron Ore Project has been halted after a workers’ strike over pay disputes. Workers are demanding better wages under a new salary structure, while talks continue between management and unions.

Mining operations at two key blocks of Guinea’s massive Simandou Iron Ore Project have been brought to a halt following a workers’ strike over pay disputes, according to multiple sources familiar with the situation.
The industrial action, which began last week, has disrupted major mining activities including blasting, loading, hauling, and dumping at the site operated by a consortium led by China’s Baowu Resources under the Baowu Winning Consortium Simandou (WCS). While core mining operations have been suspended, rail transport and port activities linked to the project are reportedly still functioning, indicating a partial continuation of logistics despite the shutdown at the mining sites.
The strike is understood to involve around 3,000 workers and marks the first major labour action within the Baowu-led joint venture since operations began. Workers began the strike on April 28, citing dissatisfaction with the implementation of Guinea’s newly introduced unified mining pay structure, which came into effect in 2025. The policy was designed by the government to standardise wages across the mining sector and reduce salary disparities between companies operating in the country’s major extractive industries.
However, workers at WCS claim the company has not fully applied the new salary grid. They argue that despite the government’s framework, their wages remain significantly lower than those of colleagues working in other parts of the Simandou project, particularly blocks 3 and 4.
Those southern blocks are operated by Simfer, a joint venture involving Chinalco, Rio Tinto, and the Guinean state. Workers at WCS say the difference in pay is substantial, with some claiming they earn two to three times less than workers performing similar roles elsewhere in the project. This perceived inequality has become a central grievance driving the strike.
A worker employed as a truck driver at WCS since 2020 said employees were previously told to accept lower wages during the mine’s development phase, with assurances that salaries would improve once production began. However, he stated that promised increases have not been implemented, leading to growing frustration among staff.
A consultant involved with the project confirmed that there is currently “no mining activity” taking place and warned that the strike is having a direct impact on production output. The consultant also emphasised the urgency of reaching an agreement to avoid prolonged disruption to one of the world’s most significant mining developments.
Negotiations between management and union representatives were ongoing on Wednesday, with both sides reportedly attempting to find a resolution to the dispute. Union officials have indicated that the strike remains active while discussions continue.
Baowu Resources, a subsidiary of China’s Baowu Steel Group—the world’s largest steel producer—and the main operator of Simandou blocks 1 and 2, declined to publicly comment on the situation. The Guinean mines ministry has also not issued an official response.
A separate source within Baowu stated that the company believes it is complying with the government’s mandated pay structure, suggesting a disagreement between workers’ expectations and the company’s interpretation of the wage framework.
The Simandou project itself is one of the most significant mining developments in the world, home to what is widely considered the largest untapped reserve of high-grade iron ore. After decades of delays due to political, financial, and infrastructural challenges, the project finally began exporting iron ore in November.
At full production capacity, Simandou is expected to yield approximately 120 million metric tonnes of iron ore annually, making it a major contributor to global supply chains, particularly for steel production.
During its construction phase, WCS reportedly employed more than 10,000 workers to build mining facilities, rail infrastructure, and port systems. As the project transitions from construction to production, workforce numbers are now being scaled down, adding further tension around employment conditions and wages.
The current strike highlights growing labour concerns within large-scale mining operations in Guinea, particularly as the country attempts to balance foreign investment, regulatory reforms, and fair labour practices in its rapidly expanding extractive sector.